The importance of tourism lifestyle entrepreneurs (TLEs) for the sustainability and competitiveness of tourism destinations has gained much attention from academic researchers and policy makers. A key characteristic of TLEs is their social ties and attachment to the physical and social environment, this in turn drives motivations to support and protect the destination that enables entrepreneurs to achieve their lifestyle goals. Thus, the interdependencies between TLEs and destination is a catalyst for value co-creation and social innovation (i.e., generating and implementing new solutions to social problems and needs). While the extant research has focused on business’ financial performance outcomes, our understanding of the drivers of TLE social innovation and the implications for the sustainability of tourism-based communities remains a major gap. This study analyzes survey data through PLS-SEM and fsQCA to identify the factors influencing TLEs social innovation activities. Findings suggest that 1) value co-creation, and 2) TLE proactiveness directly influence social innovation, and support a mediation effect on the relationship between the businesses’ market orientation and social innovation practices. These finding introduce new knowledge on the drivers of TLE social innovation, with practical implications for local governments and destination authorities in supporting the sustainability of destinations.

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Social innovation,Tourism lifestyle entrepreneurs,Sustainability,Co-creation,Entrepreneurship

• Economics and Business - Social Sciences